Ugandan exporters react as Saudi Arabia launches ambitious coffee farming project

KAMPALA, August 21, 2025 – Oil-rich Saudi Arabia has unveiled an ambitious plan to revitalise its coffee sector by producing high-quality coffee seedlings using advanced scientific methods, including tissue culture.

The initiative, led by Saudi Reef in collaboration with the National Centre for Research and Development of Sustainable Agriculture, aims to plant at least 50,000 seedlings and increase the country’s coffee tree population by 30 percent by the end of 2025.

According to Saudi Reef spokesperson Majid Al-Brikan, the project began with the selection of six elite genetic samples from coffee trees grown in Jazan, Asir, and Baha regions. These were delivered to agricultural laboratories, resulting in the production of at least 17,000 somatic embryos and 4,000 plants, which are currently in the rooting stage.

A bioreactor growth accelerator has been installed to speed up production while reducing dependence on manual labour. The project has already led to significant developments, including the re-evaluation of 82 genetic coffee varieties.

The project will also support the creation of a reference manual for local farmers on cultivation and post-harvest practices, enabling the government to monitor producers with greater precision.

Concerns in Uganda as coffee market faces potential disruption

The Saudi initiative comes at a time when Uganda has been exporting increasing volumes of coffee to the Kingdom, following the efforts of the now-defunct Uganda Coffee Development Authority [UCDA] to position the country’s coffee as a high-value specialty product.

Ugandan exporters are now voicing concern that once Saudi Arabia’s domestic production ramps up, the volume of coffee exports to the Gulf nation may decline, potentially impacting Uganda’s foreign exchange earnings from the crop.

Charles Kironde, Managing Director of Mwanyi Terimba, the Buganda Kingdom’s coffee marketing firm, believes the Saudi development poses a challenge to Ugandan farmers.

“Yes, it is a challenge for us to begin seeking alternative markets. Forewarned is forearmed, as we say. It’s a positive move for Saudi Arabia, but it may affect our coffee sales,” Kironde commented. He confirmed that Mwanyi Terimba exports to the Saudi market but declined to disclose specific figures.

Bridger Matsiko, Director of Rukungiri-based Bridger Coffee Limited, downplayed the immediate impact of Saudi Arabia’s plans.

“These initiatives don’t produce overnight results, even when fast-tracked. The effects may only be felt in several years. By then, we will likely have discovered new markets,” Matsiko noted.

Richard Kiwanuka, from the Masaka Organic Farmers’ Association, which also exports to Saudi Arabia through intermediaries, said the news has prompted them to reassess their market strategy.

“Much of the coffee we collect from farmers goes to Saudi Arabia and other Arab nations. With this development, we must begin scouting for alternative markets,” he said.

However, James Kavuma, Manager at Masaka Cooperative Union, appeared less concerned by the Saudi move, citing strong demand for Ugandan coffee in other regions.

“Our coffee is now in high demand across the European Union, Asia, and the United States. Uganda commands a large and growing global market, so I don’t think this will significantly affect us,” he told this reporter in a telephone interview.

In 2023, President Yoweri Museveni instructed the rationalised UCDA to boost exports to Saudi Arabia from 3.5 million 60-kg bags to at least 20 million bags by 2025.

The Saudi coffee market is projected to grow at a compound annual growth rate [CAGR] of 6.2 percent  between 2025 and 2028.

Other Arab markets for Ugandan coffee include Kuwait, Iraq, Iran, Qatar, and Turkey, among others.

https://thecooperator.news/saudi-arabia-signs-international-coffee-agreement-2022/

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